U.S. Economy On Verge Of Restoring Jobs

Job creation was at its lowest level in a year through May, but it hasn't stopped the labor market recovery from accelerating, Ben Winck reported for Business Insider.

Photo Insert: The US economy has now recouped more than 96% of the jobs it lost at the start of the coronavirus crisis.

According to data released Friday morning, the US economy added 390,000 nonfarm payroll employment in May, down from 436,000 in April but still exceeding the projection of 325,000 new positions.

The report confirms a long-term downturn in job growth across the country. However, it puts the country within striking distance of full employment recovery.

More than 96 percent of the jobs lost at the onset of the coronavirus outbreak have now been recovered. According to Insider projections, the US is on track to finish its labor market rebound by the end of July. In February 2020, the country had 152.5 million payrolls, just before lockdown measures caused a record drop in employment.

The economy will return to that level in a few months if the average rate of job growth does not reduce considerably.

The amount of progress left to be made is so small — just 820,000 jobs — that a stunning surprise to the upside in June could put the US back to that threshold by the end of the month.

The economy added 714,000 in February, and while new dynamics have weighed on job creation, such a surprise isn't completely out of the picture, especially if an influx of Americans comes off the labor market's sidelines in search of work.

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